Norwegian chemicals company Yara International is evaluating a potential initial public offering (IPO) of its Yara Clean Ammonia business (YCA) on the Oslo Stock Exchange.
Courtesy of Yara
As previously discussed, the evaluation of a potential future listing is focused on attracting minority investors and reflects Yara’s strategic desire to facilitate this the hydrogen economywhere clean ammonia will play a crucial role emission-free fuels for shippingPower generation, green manure production and other industrial applications.
YCA was established in February 2021 as a separate segment and business unit to focus on clean ammonia, i.e. green and blue ammonia.
The Norwegian company then announced that YCA would be established as a separate legal entity and Yara would retain the majority stake.
A potential IPO would raise capital to accelerate YCA’s growth, better visualize the company’s value, and support greater management focus — for both companies.
“The decision to explore a potential IPO for Yara Clean Ammonia represents a natural next step as Yara executes its strategy to expand its business model. YCA remains at the core of Yara’s strategy and Yara will continue to support YCA over the long term as majority owner and preferred partner.” Svein Tore HolsetherCEO and President of Yara, commented.
Clean ammonia offers a solution to decarbonize hard-to-reduce sectors such as shipping, power generation and agriculture. New use cases represent major opportunities in addition to the existing structurally robust ammonia market, with the global ammonia market expected to more than double in size by 2050. This is expected to result in shifts in trade flows and increased trade in ammonia, which will significantly increase the importance of YCA’s position in the midstream value chain.
As a preliminary step in the event of a potential future IPO, Yara will initiate an internal process to organize YCA assets, contracts etc. into dedicated YCA entities/subsidiaries, which will remain owned by Yara for the time being.
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